WHO ARE THE BEST FRANCHISEES ?
FranchisingAuthor :
Martin Greenspon 
Martin Greenspon founded M-Four in 1981. His lifetime career has included the manufacturing sector as well as being a Director of one of Canada's leading investment firms. He can be reached at martin@mfourintl.com
The use of psychological profiling when considering the suitability of potential franchisees is becoming increasingly popular as more companies realize the benefits of specialist recruitment practices.
To most of us, reference to the term "psychology" conjures up a picture of a confessional couch in a darkened room.
In industry however, the advantages of using the services of recruitment specialists to investigate the suitability of prospective franchisees cannot be overlooked.
This is a big determining factor in how successful people are likely to respond in their chosen line of business.
It's Never Easy
We all know that finding a good franchisee is not easy. It can be a tedious search and selection process.When you think you are there and the new franchisee has signed up, there are still major questions to be resolved. Will he or she work out? Will he or she have the right personality, attitude and outlook to fit with the organization and build a good and viable business?
A franchisor is putting their name and reputation on the line when they take on a new franchisee. The risk to the franchisor's investment is tied up with how the new franchisee owner performs.
Unwise Choices
Out-dated pre-conceptions of what made the ideal franchisee could lead franchisors into unwise choices.
For example, a potential franchisee that has a large amount of money from a company payout may have spent his/her life working in sales. If the company had a large sales staff, this person may never have been directly responsible for drumming up his/her own business.
While many potential franchisees have come from large companies and have the right amount of finance to buy a business, and what appears to be the right motivation, they are not necessarily equipped to "make things happen" in their own franchised business.
Moving from being employed to being self-employed is a big challenge in life. Many franchisors are in a rush to expand their networks. Their urgency has them signing up new owners without properly looking into whether these people are going to be psychologically fit to make it.
Tarnishing The Image
If franchisors don't get the right people, and the new businesses keep falling over, it tarnishes their image. For the franchisor, there is poor financial performance and loss of time in supporting under-performing franchisees. Terminating under-performing franchisees can be a costly exercise for both parties. It is much better to take extra care when first selecting a franchise owner as a business partner.
Select the right people by concentrating on the competencies that are demonstrated by the applicants, and by investigating whether these competencies are suited to the franchisor's company.
This is done in a number of ways, but the first step is for the professional psychologists to research the franchisor's organization in order to find out what sort of people and skills would be best suited to their business.
Compare Yourself With The Best
One of the most effective ways of finding better prospects is to look at established franchisees that are doing well.
This information may be used to target a recruitment campaign towards the appropriate segment. It also enables psychologists to provide more information to the franchisor about what sort of people he/she really needs.
When applicants are interviewed they are tested in a number of ways to see whether their behavior and capabilities are going to suit the franchisor's operation. Organize telephone screenings, personal interviews and as the decision draws closer, practical experiences like having the applicant spend a day working in an existing franchise.
Even if an applicant proves to be lacking in some essential competencies, it does not necessarily mean he/she will be unsuccessful. The franchisor may decide that this applicant is the right person for the business, providing he/she is trained in a particular area or able to recruit somebody else who has the skills or qualities he/she may lack.
Purpose Designed Selection Methods
Competency-based selection methods are often more realistic than psychological testing with written tests and questionnaires. Very often, the tests and questionnaires that are commonly used were originally designed for educational or clinical use and not occupational use.
Profiling Methods
Profiling methods that are used by franchisors as a useful tool could be of invaluable assistance when selecting franchisees.
These reports do not take the place of the usual interviewing and checking procedures that would be carried out by franchisors. Profiling, simply adds another dimension.
There is no time limit and there are no right or wrong answers. Profiling is based on measuring major personality traits together with the perspective, behavior intensity and energy level of the subject.
These findings are then compared with the franchisor's job requirements and the type of environment in which the franchisee is likely to be working.
The client receives a report which addresses the reasons why the subject is suitable (or not), lists key issues that should be further probed or checked and suggests ways in which such a personality could be best managed and motivated.
Entrepreneurs Do Not Make Good Franchisees
Initially, franchisors say they need people who are competitive, self-starters, decisive self-managers, goal-oriented and enthusiastic team players.
This usually describes people who are best described as entrepreneurs, but entrepreneurs do NOT make good franchisees.
Good franchisees have realistic goals, like to work within a good system of management, pay attention to details and do what they are told.
All potential franchisees are measured against the profile of an "ideal" franchise operator and the result is usually a vastly improved success ratio for new operators.
What makes that "ideal" franchisee? He or she has the drive and desire to achieve. This drive is tempered with good purpose and maturity. They have energy, stamina and a willingness to have a system and structure behind them. Ideal franchisees will accept the franchisor's protocol and experience to ensure a long term, successful business relationship.
To most of us, reference to the term "psychology" conjures up a picture of a confessional couch in a darkened room.
In industry however, the advantages of using the services of recruitment specialists to investigate the suitability of prospective franchisees cannot be overlooked.
This is a big determining factor in how successful people are likely to respond in their chosen line of business.
It's Never Easy
We all know that finding a good franchisee is not easy. It can be a tedious search and selection process.When you think you are there and the new franchisee has signed up, there are still major questions to be resolved. Will he or she work out? Will he or she have the right personality, attitude and outlook to fit with the organization and build a good and viable business?
A franchisor is putting their name and reputation on the line when they take on a new franchisee. The risk to the franchisor's investment is tied up with how the new franchisee owner performs.
Unwise Choices
Out-dated pre-conceptions of what made the ideal franchisee could lead franchisors into unwise choices.
For example, a potential franchisee that has a large amount of money from a company payout may have spent his/her life working in sales. If the company had a large sales staff, this person may never have been directly responsible for drumming up his/her own business.
While many potential franchisees have come from large companies and have the right amount of finance to buy a business, and what appears to be the right motivation, they are not necessarily equipped to "make things happen" in their own franchised business.
Moving from being employed to being self-employed is a big challenge in life. Many franchisors are in a rush to expand their networks. Their urgency has them signing up new owners without properly looking into whether these people are going to be psychologically fit to make it.
Tarnishing The Image
If franchisors don't get the right people, and the new businesses keep falling over, it tarnishes their image. For the franchisor, there is poor financial performance and loss of time in supporting under-performing franchisees. Terminating under-performing franchisees can be a costly exercise for both parties. It is much better to take extra care when first selecting a franchise owner as a business partner.
Select the right people by concentrating on the competencies that are demonstrated by the applicants, and by investigating whether these competencies are suited to the franchisor's company.
This is done in a number of ways, but the first step is for the professional psychologists to research the franchisor's organization in order to find out what sort of people and skills would be best suited to their business.
Compare Yourself With The Best
One of the most effective ways of finding better prospects is to look at established franchisees that are doing well.
This information may be used to target a recruitment campaign towards the appropriate segment. It also enables psychologists to provide more information to the franchisor about what sort of people he/she really needs.
When applicants are interviewed they are tested in a number of ways to see whether their behavior and capabilities are going to suit the franchisor's operation. Organize telephone screenings, personal interviews and as the decision draws closer, practical experiences like having the applicant spend a day working in an existing franchise.
Even if an applicant proves to be lacking in some essential competencies, it does not necessarily mean he/she will be unsuccessful. The franchisor may decide that this applicant is the right person for the business, providing he/she is trained in a particular area or able to recruit somebody else who has the skills or qualities he/she may lack.
Purpose Designed Selection Methods
Competency-based selection methods are often more realistic than psychological testing with written tests and questionnaires. Very often, the tests and questionnaires that are commonly used were originally designed for educational or clinical use and not occupational use.
Profiling Methods
Profiling methods that are used by franchisors as a useful tool could be of invaluable assistance when selecting franchisees.
These reports do not take the place of the usual interviewing and checking procedures that would be carried out by franchisors. Profiling, simply adds another dimension.
There is no time limit and there are no right or wrong answers. Profiling is based on measuring major personality traits together with the perspective, behavior intensity and energy level of the subject.
These findings are then compared with the franchisor's job requirements and the type of environment in which the franchisee is likely to be working.
The client receives a report which addresses the reasons why the subject is suitable (or not), lists key issues that should be further probed or checked and suggests ways in which such a personality could be best managed and motivated.
Entrepreneurs Do Not Make Good Franchisees
Initially, franchisors say they need people who are competitive, self-starters, decisive self-managers, goal-oriented and enthusiastic team players.
This usually describes people who are best described as entrepreneurs, but entrepreneurs do NOT make good franchisees.
Good franchisees have realistic goals, like to work within a good system of management, pay attention to details and do what they are told.
All potential franchisees are measured against the profile of an "ideal" franchise operator and the result is usually a vastly improved success ratio for new operators.
What makes that "ideal" franchisee? He or she has the drive and desire to achieve. This drive is tempered with good purpose and maturity. They have energy, stamina and a willingness to have a system and structure behind them. Ideal franchisees will accept the franchisor's protocol and experience to ensure a long term, successful business relationship.